Davids Decision To Run Against Goliath

Although this example is picked out of the book from Lee Iacocca´s “Where Have All The Leaders gone?” I remember that also Sir Richard Branson offered the idea to start a new biz while running against a Goliath.

This is the start-up idea behind it: Goliaths are visible. They are popular, known and show some transparency. Transparency allows to copy and invent some parts of their running biz model. What you need is a way to do 1 thing better or say, do it different than they do and then: DECIDE to run for their marketand grab some of their market shares! It takes a decision to become a competitor or as I like to call it: become a contender!

To motivate you for choosing one of the given opportunities let me offer you some quick examples:

Federal Express (USA) : Fred Smith decided to run against the post office. He choose to do the package shipments only, everything bigger & heavier than envelopes and to deliver faster. By today, he made it. His biz model was copied globally.

Enterprise “rent-a-car” (USA) : Jack Taylor run against Hertz and Avises with one difference only, pushing the customer-service button a bit deeper than the Goliaths did and he created the slogan: “Pick Enterprise. We´ll pick you up.” Makes sense? For sure!

CNN (USA) : Ted Turner thought about offering a 24-hour-a-day TV news channel “show” and none thought it would work out long-termly. It did.

Let´s take the Enterprise example as a decision process and let us think it through:

Problem, challenge: 1. ) people send packages of any size to friends and also return goods to some shops 2.) shops deliver goods of many sizes to various customers, nation-wide and internationally.

There was definitely a market.

You start with a truck locally. You advertise in your State. Your first customers will already send you across the country. It won´t take long!

Is there a huge risk?

Yes, you might think that you´ll only get a few customers, mostly locally. But maybe you just think too much like a potential taxi-driver. But no, a new service for package shipment is not to compare with taxis who drive people from A to B. Shipments which make it easier in any case for the customer, either for the sender or receiver, are always welcomed.

Are there any uncertainties?

I guess yes, but it´s only the missing customers at the beginning. You need a truck and a driver to start, unless it´s you yourself who will drive. And then go out and market your biz idea.

The important opportunity to grow!

This start-up model is very flexible. The moment your customers increase, you just need to buy another truck and hire another competent driver. There´s the GPS to find the ideal route and “speed up” the delivery. Give your company a different name and name exactly what you explicitly do.